“In a statement, both firms announced they had reached a
“mutually agreeable settlement” of the suit filed by Caldera
against Microsoft in July 1996.”
“As part of the announcement, Microsoft said it will record a
one-time charge against earnings for the quarter ending March 31,
which will cut earnings per share by about three cents. This could
mean that the settlement could cost somewhere in the neighborhood
of $150 million, based on one analyst’s estimate, although the
actual settlement could be higher.”
“The surprise settlement, which appears to be lower than
Caldera’s earlier demands, defused a number of potential antitrust
time bombs for the software giant. Although many legal
analysts thought Microsoft had strong arguments in its favor, a
ruling against it could have given fuel to recently filed
class-action suits. Unlike the case filed by the Justice
Department, Microsoft would have had to appear in front of a
jury.”